Not every sales role drives revenue the same way, so it doesn't make sense to pay everyone on the same plan. Yet plenty of companies still try to copy-paste one commission structure across the whole sales org, and then wonder why half the team feels underpaid and the other half feels unmotivated.

Sales Development Representatives (SDRs) generate qualified pipeline. Account Executives (AEs) close it. Their responsibilities are different, their quotas are different, and their performance metrics are different, which means their compensation plans need to be different too.

In this guide, you'll learn the key differences between SDR and AE roles, how their compensation plans are typically structured, common pay mixes and incentive models, mistakes companies should avoid, and how compensation software makes managing both plans easier as a team grows.

Ask ten sales reps what OTE means and you'll get ten different answers. Some think it's their salary. Some think it's guaranteed. Some think it's a number recruiters made up to make a job posting look better than it is.

On-Target Earnings, or OTE, is one of the most misunderstood terms in sales compensation, and that confusion costs people real money and real trust. Candidates accept offers they don't fully understand. Reps hit quota and still feel confused about their paycheck. Finance teams build comp plans that nobody on the floor can explain in one sentence.

This guide breaks down exactly what OTE means, how to calculate it, and how it's different from base salary and total compensation. You'll walk away knowing how to read an offer letter, build a comp plan, or explain your own earnings potential without the guesswork.

Most commission plans don't fail because the idea is wrong. They fail because nobody modelled the numbers before rolling them out. A rate that looks generous on a slide turns into a payout you can't afford at 130% attainment, or an accelerator so flat that your best reps stop pushing the moment they hit quota.

So we built a free commission sheet template to fix that. It's one Excel file with eight ready-to-use sales commission spreadsheets, each structure on its own tab, each with live formulas and a filled-in sample row. Change a rate, a quota, or a revenue number and every payout updates instantly, and because everything lives in one workbook you can compare models side by side without juggling downloads.

Download the commission sheet template, or start for free and let Driven build the plan for you.

New to comp design? Start with our guide to sales compensation structure types, then model your pick here.

Sales compensation plans do more than pay people; they shape behaviour, drive revenue, and define culture. Get the plan right, and your sales team is aligned, motivated, and chasing the numbers that actually matter. Get it wrong, and you'll find yourself dealing with disputes, disengaged reps, and revenue targets that feel like a moving target.

In 2026, building a compensation plan has become significantly more complex and more strategic. The rise of recurring revenue models, hybrid sales teams, AI-driven forecasting, and revenue operations has changed what "good" looks like. This guide walks you through every step of building a modern sales compensation plan that performs.

Sales compensation management is undergoing a major transformation. What was once a manual, rule-based, and spreadsheet-heavy process is now becoming more intelligent, automated, and insight-driven. At the core of this shift is artificial intelligence (AI) in revenue operations and commission management. Businesses are no longer just looking for tools that calculate commissions; they want systems that can think, analyse, and optimise.

Here's where things get confusing: what exactly is an AI commission agent, and how does it differ from conventional commission software? This blog explains it well. Most commission software calculates payouts. An AI commission agent goes several steps further, it analyses, predicts, automates, and even assists decision-making.

Bizzy, a Ghent-based AI sales intelligence platform, was running commissions entirely on manual spreadsheets. After deploying Driven, they reclaimed ~4 hours per rep per month, cut commission disputes by ~90%, and got new reps to full comp clarity in a single day.